![]()
Continuous disclosure notice - Childcare Update
15 June 2010
Over the last two years Orchard has been dealing with the impact of the global financial crisis (GFC) and the collapse of the Fund’s major tenant ABC Learning Centres Limited (ABC).
During the last 18 months Orchard has transitioned 164 of the Fund’s 201 child care centres to new operators on leases that provide for similar rents but with improved lease terms. New leases now include extended initial terms to 15 years, provisions for rent reviews based on at least consumer price index (CPI) increases and access to trading and financial data of the tenants.
In addition, the Fund now holds security in the form of bank guarantees and in some instances corporate and personal guarantees in respect of these 164 centres.
Following completion of the assignment of leases to Goodstart, NAB has issued a Positive Receivership Notice on the 11 June 2010 which confirms the expiry date of the Fund’s current debt facility as 30 June 2012. This Notice also effectively allows the Fund to resume quarterly income distributions to investors commencing with the distribution for the year ended 30 June 2010.
The Fund is now in a strong financial position with low debt, secure cash flow and acceptable banking
arrangements.
Please click here to download a copy of this update.